Mumbai, India (BBN)-The Nifty and the Sensex slipped into the negative zone after opening higher as investors turned wary ahead of November F&O expiry on Thursday.
The Nifty opened 49 points up at 8,051, while the Sensex opened 140 points up at 26,101, reports The Hindu Business Line quoting PTI.
At 10:10am, the 30-share BSE index Sensex was down 0.88 point or 0.00 per cent at 25,959.90 and the 50-share NSE index Nifty was down 3.25 points or 0.04 per cent at 7,999.05.
Sageraj BAriya VP-Institutional Sales, East India Securities, said: “Indian markets are seeing relentless unwinding on doomsday prophecies ranging from a 1% – 3.3% decline in GDP growth. We strongly disagree with these prophecies and are reminded of similar sentiment surrounding Brexit & Trump presidency and we all know how those doomsday prophecies ended up. We believe that these negative sentiments will change as soon as new currency comes back into the system. In the first 8 days, new currency equivalent to 10% of the outstanding demonetised currency was pumped into the system and even if we go by the same rate we will have almost 50% + new currency in the system by December end. Also we expect some strong measures from the government / policy makers – Sharp rate cut / Uptick in govt spending / possible cut in fuel prices, in order to boost the sentiment. Additionally the global set up for equities looks quite promising which should further stem the negative sentiments. While we do expect a 1-2 qtr of slowing economy but we also believe that most of it is in price and the current markets offer excellent opportunity for long term investors.”
All the broader and sectoral indices were trading flat. Volatility was up 0.96 per cent with the India Vix quoting at 18.6425.
Asian stocks bounced to one-week highs on Wednesday as investors tried to share in the exuberance of Wall Street’s record run, while high US bond yields kept the dollar well underpinned.
US stocks extended their post-US election rally on Tuesday with moderate gains that pushed the Dow above 19,000 and the three major indexes to record closing levels for a second straight day.
BBN/AI/ANS